About Debt Consolidation Loan

Debt consolidation
Debt consolidation Invest-loans.com

What is a debt consolidation loan?

Debt consolidation is a way of reorganising your debts. It involves taking out one loan to pay off several other debts such as overdrafts, payday loans, and credit cards. 

These forms of credit can often charge high rates of interest. 

Much more competitive rates are usually available on bigger loans. This means that combining all your debts into one consolidation loan could reduce the overall rate you pay — and make things simpler too.

To consolidate your debts, you need to work out how much you owe on all your debts in total, and take out a loan for that exact amount. You then use the loan to pay off all your debts, then repay the debt consolidation loan by making monthly payments to just the one lender.

What can you use a debt consolidation loan for?

You can use a debt consolidation loans to consolidate lots of different types of debt. These might include:

  • credit cards
  • store cards
  • personal loans
  • payday loans
  • overdrafts
  • car loans
  • buy now pay later schemes
  • outstanding utility bills
  • payments to debt collectors or bailiffs

How do debt consolidation loans work?

A debt consolidation loan will be either:

  • secured
  • unsecured

Secured loans are loans secured against an asset, usually your home. They enable you to borrow larger sums of money, depending on how much equity you have. However, you risk your home being repossessed if you fall behind on repayments. Secured loans are sometimes called “homeowner loans” and may be your only option if you have a bad credit history.

You should think carefully before transferring unsecured debt, such as credit cards and overdrafts, into a secured loan.

Unsecured loans are loans which are not taken out against anything. The amount you can borrow will be based on your credit rating and income. Unsecured loans are usually for smaller amounts than you might borrow with a secured loan.

Whether you have a secured or unsecured loan, the process for consolidating your debts works the same way.

The lender will pay the lump sum into your bank account — then it’s usually up to you to use the money to pay off each of your debts separately.

Don’t be tempted to spend the debt consolidation money on anything else — the aim is to pay off your debts.

You’ll then need to repay the debt consolidation loan each month for the duration of the term.

With our debt consolidation loan

Consolidating multiple credit accounts into one new loan with a single payment may help you lower your overall monthly expenses, increase your cash flow, and eliminate the stress of multiple monthly payments.

When you consolidate your debt with  Invest-loans Group Private Money Lender you can save money on interest, enjoy a flexible loan amount, choose your own pay-back terms, and more. With our Debt Consolidation solutions, you can be more in control of your finances.

We offer the best options to consolidate your credit card and other debts include a balance transfer credit card, an unsecured personal loan, a home equity loan or line of credit.

Consolidating your debt could be the solution you’re looking for lower your monthly payments and get you out of debt faster so you can be in the driver’s seat of your own finances.

Get financing for whatever you need now with invest-loans.

No matter what type of debt consolidation loan option you’re looking into, it is important to understand how to consolidate debt. The following ideas will walk you.

Understand Your Debt

Determine how much debt you have: First, make a list of your loan and credit card balances, with the interest rate and monthly payment for each.

Decide your Loan amount

Once the inventory of all your debt is complete, decide on the amount of the debt consolidation loan taking into account all applicable fees.

Decide your Loan Tenure

Decide the length of your loan according to your needs. A long-term ease your monthly payments and will promote your eligibility.

Debt consolidation Evaluate your profits

Borrow at Invest-loans and you’re always winning regardless of the loan option. Do your calculations and see even the many benefits you realize by consolidating your debts with us.

Get financing for whatever you need now  

Convert your multiple loans into one unsecured loan to control your finances and get rid of stress.

Debt consolidation – Single Monthly Payment

Avoid the hassle of managing multiple credit card bills every month. Combining all debt into one loan reduces your total monthly bills into one single payment, making it easier to plan your finances.

Fixed Interest Rate

Missing just one loan monthly payment could damage your credit score and add interest to your monthly payment. With a loan through Invest-loans, your interest rate is fixed. You’ll know exactly what your monthly payments are.

Improve your credit score

When you pay off your credit card debt with a this loan, you will often receive a boost to your credit score, so long as you don’t start using your cards again.

Debt Consolidation Loan – Eligibility

Any salaried, self-employed or professional Public and Privat companies, Government sector employees including Public Sector is eligible for a personal loan.


The applicant should be at least 18 years at the time of applying for the loan, and should be no older than 75 years at the time of loan maturity.


Minimum Net Monthly Income: €200

Credit Rating

The applicant is not required to have a good credit score established by the bank.

Will a debt consolidation loan impact my credit score?

A debt consolidation loan has the potential to either help or hurt your credit score.

To improve your credit score, you’ll need to make your loan repayments on time.

You should also close your accounts with your previous lenders so this credit is no longer available to you. Having too much available credit could affect future credit applications, as lenders will question why you want to borrow more money.

A debt consolidation loan can damage your credit score if you fail to make repayments on time. Taking out more credit – i.e. the debt consolidation loan itself – can also impact your credit score.

You’ll also need to be disciplined about not slipping back into using the overdraft or credit cards you have just paid off. That’s why you should close your old credit accounts as soon as your debts are paid off.

Is a debt consolidation loan right for me?

A debt consolidation loan could be right for you if you:

  • have multiple debts you’re trying to pay off
  • can borrow enough money to pay off your existing debts including any early repayment charges
  • have a good enough credit score so that you are eligible for a debt consolidation loan with a low interest rate
  • can afford the monthly repayments on the debt consolidation loan
  • have the discipline to stick to the repayment plan and don’t miss any payments
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